Posts Tagged ‘income protection cover’

It is an uncomfortable thought for so many of us, when we stop to consider what the effects of losing our income would be in the event that something beyond our control was to happen. The long and short of it is simple, there is very little we can do to avoid the unexpected as unfortunately hindsight is never 20/20 and can often throw a few surprise spin balls.

To gain a more accurate look at what the possibilities may be of an individual developing the need to make a claim on their income insurance, insurance companies rely on underwriting each application, based on a person’s age, physical condition, lifestyle, employment and many other factors to determine any particular risks and therefore present the best package for them and the correct premiums to pay.

Going back to the point of offering added security in the event of a loss of income, it is wise to take a look at the current economic climate too. In today’s society there are very few careers that offer a ‘job for life’ with many companies feeling stresses and strains of what is a very competitive world that we now live in.

In that respect, coupled with varying degrees of hazards within many jobs, there are many chances where individuals could suffer an injury or an illness that could prevent them from continuing on in their employment. In any case arranging the right cover could make all the difference when faced with such scenarios and gaining protective measures for your income earlier can prove to be a wise decision.

There are many individuals each year that are unexpectedly placed in positions where their income is thrown into disarray and complete jeopardy. These days, losing an income is a worrying and testing experience, especially when it has either been an injury or illness that has caused the loss of income. Seeking the help and advice can be difficult, especially when counting up the cost of your monthly outgoings.

Many who are unfortunate enough to be placed in such a scenario have in the past reported vat changes to their lifestyles as a result of losing a large percentage of the family income, having to resort to selling their homes and valuables as a result. Such measures are not uncommon when faced with situations such as repossession orders and bailiff interactions and in all honesty, one phone call can often be the simplest and easiest way to avoid any of these uncomfortable and invasive events from ever happening.

There are many levels of income protection cover that can be purchased to produce a tailored solution for you and your family. Offering a bespoke and individualised solution to make the most of even the worst case scenarios life throws at you, income protection insurance can hold many significant benefits; the main one of which is a sizable percentage of your monthly wage of salary paid to you either until you return to work, the set period of a policy reaches its end or you retire. Cost effective policies now present the perfect choice for many, making income protection a viable and affordable insurance plan to take out.

There are many that have yet to discover what benefits income protection insurance have to offer and those who are unsure of its importance. Perhaps already having certain insurance policies in place such as life insurance, there needs to be a certain clarity made between income protection and other seemingly similar policies.

Ok, if you were to look at life insurance and other policies such as critical illness insurance, it is important to deduce straight away that these two policies should in no way be connected with income protection insurance. Possible similarities between income protection and critical illness plans are apparent in the fact that they pay out if a person contracts a critical illness or are no longer able to work due to that illness but life insurance only pays out if the insured party dies.

No help there for the insured party then is there? With that in mind, critical illness policies pay out a lump sum cash amount whereas income protection pays a percentage of the claimants’ salary each and every month, ensuring a regular income is still attained. Depending on the level of cover a person chooses, they could in effect receive payments up until the day they retire if their injuries or illness is serious.

So in the final conclusion, the question remains of when the right time it would be to take out income protection. The answer can be very different for individual cases but by any standards, the earlier you take out a policy, the more cost effective it will be in the long run, especially if there is a history of health problems in your family or if you work in an industry that is dangerous or has high risks.

In today’s society, we are surrounded by so many types of insurance that often it may make many feel nauseous, with the weight of the world bearing down on their shoulders as to finding the right decision as to what insurance policies are necessary and which ones are just there for added peace of mind and protection.

There are few insurance plans that are designed to assist you over a long term basis and these can be extremely helpful if perhaps you have lost your income through becoming ill or after having an accident. Both individuals and employers can take out income protection insurance plans, and bespoke policies can be set up for employees to benefit from in the event of an accident occurring.

Whatever the events are that lead up to a claim being presented, the fact is there as clear as day….without the right help and assistance, there would be nothing that individual could do to protect their families from feeling the brunt of the effects of a loss of earnings.

The advice for many is to not delay in any way when setting up any income protection. The earlier you start, the less you will pay overall throughout the oncoming years and for many, taking out an Income Protection Insurance Policy has enabled them to receive exceptional peace of mind.

Designed to present you with a tailored and affordable way to protect against future possibilities, especially if your future holds a particular risk that your job security may be flawed in any way, income protection matters and all should consider their options.

Worrying about how you would ever pay your bills in the event of a financial blow such as losing your job or the ability to do your job is a trying and testing issue that many individuals spend a certain amount of time considering throughout their working careers. Definitely as of late with the state of the economy over the last decade, job security in many sectors has come under fire and not even the most secure of jobs within certain industries have been without the worry of possible loses.

Understandably then that when faced with certain income protection policies that seem to be quite high, there are many that choose to decline the chance to take out protection against their income. In a way the whole thing can be a double edged sword…but only if you are to rush into things and find yourself only checking one or two companies for a comparison.

In order to find a viable solution and to find an insurance specialist that can present a policy that is not only tailored to your needs but also one that fits into your budget, you need to do your homework. Checking insurance comparison sites for the best offers that can be found with a little investigative work and looking at various requirements and points that can lower premiums all offer added assistance in finding an affordable alternative.

In any event, losing an income can be hugely significant, however large or small it may be and there are really no ways round finding a quick solution other than finding a new job or a way to replace that income as soon as possible. However with Income Protection Cover, you can help protect against the damage that can arise from a sudden drop in a household’s income. What Income Protection Cover can effectively do, is provide you with a monthly income based off a certain percentage of your gross salary so that important outgoings and bills can still be paid and you still gain money to assist in your family’s daily running costs.

Because certain insurance services such as Income Protection needs to suit the needs of individuals, the insurance plans are normally quite flexible, providing the right assistance to benefit a selection of budgets, requirements and outgoings, reflecting obviously on how much the monthly premiums will be, from customer to customer. With many insurance specialists you need to be 100% sure of what you are eligible to gain in the event you need to make a claim, such as some insurers will not pay out if you are made redundant, or if you have suffered an accident through wilful neglect and are trying to claim a loss of income. Be honest and true at all times with any claim or policy to avoid disappointment.

Income protection is for anyone, no matter what age you are or where you work you are entitled to take out income protection.

Many people have come to take out income protection insurance over the past few years due to the economic climate being very unstable. With the economic climate being unstable employers are offering less benefits to their employees and so people are taking it upon themselves to ensure they are protected in case they end up facing long term unemployment due to incapacity. Income protection enables you to receive monthly or weekly tax-free payments which equate to a percentage of your monthly wage when the plan was taken out.

When you are unemployed you still need to maintain mortgage and utility payments, so having income protection will enable you to do this and if you have a long term illness you can rest knowing that your home payments are covered and you can focus on returning to full health. Once you are of health to return to work then payments will stop, and you will be expected to continue premium payments.
There are multiple types of insurance plans which help you maintain payments when you become unemployed. Some like Mortgage Income Protection cover you due to most reasons for unemployment others only cover you if you are unemployed due to illness or an accident. Payments will be issued after a pre agreed deferred period.

Are you unsure as to if income protection insure is for you? Just review all payments you currently make and try and work out how you would maintain these payments if you were to suddenly become unemployed. If you would struggle to maintain the essential payments, then the suggestion would be to consider taking out income protection insurance for peace of mind.